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They're not paying "just" 2% in their entire structure. Those profits flow back through various entities, to the US (where they will pay additional tax), to the
by charlesdm 8y ago
They're not paying "just" 2% in their entire structure. Those profits flow back through various entities, to the US (where they will pay additional tax), to the shareholders (either ultimately through dividends or buybacks, which is subject to tax again).
- heavenlyblue 8y agoSo how is US related to the people living in the UK? I don’t see US paying for the police making sure their offices aren’t looted on a daily basis.
- sievebrain 8y agoPolice protect people, by and large. Corporations don't benefit much from services of the state. Fire services would be a better example but they are often funded out of local rates rather than national corporation tax. As a Brit I wish my country would give up on these boring and routine "outrage" stories. Amazon pays corporation tax in America because it's an American company. End of story. If my fellow Brits want a world beating firm like Amazon that brings profits back to the UK locally, they need to get cracking and make one.
- jsldn123 8y agoDon't corporations benefit from having a base of consumers protected by the state? And employees educated by the state. And able to travel to your business on roads paid for by the state, etc etc.
- tonyedgecombe 8y agoCorporations don't benefit much from services of the state. They certainly benefit from investments in education, the road network, telecoms, etc.
- noir_lord 8y agoAlso courts and established legal systems. It's amazing how little people value all that stuff until they actually need it.
- heavenlyblue 8y agoI know, right? The only reason I realised that was because I am from a country that legally has all of that but none of it properly works. Large corporations don’t work very well in these countries (or they work really well, depending on how illegal they would like to be).
- sievebrain 8y agoCompanies pay if they want the services of the courts to resolve disputes. They don't get it for free
- charlesdm 8y agoThey're creating jobs in the UK, on which those employees pay income tax, which contribute directly to the UK treasury. Those jobs wouldn't be there without the US company that is Amazon. Having Amazon invest in the UK is a net win for the country. In addition to corporate tax, they likely also pay indirect taxes, such as business rates on property, stamp duty, and (some) VAT. If you were to flip this, I take it you prefer a company such as BP pays all of their tax in the country they operate in, and very little in the UK? Most assets are not UK based, after all. That's the same reasoning.
- kennydude 8y agoThey're creating contractors who have to pay their own tax on top of the horrific expectations Amazon thrown on them. Not exactly the best.
- charlesdm 8y agoNever did I say they were creating amazing jobs. Most lower end jobs suck. But they do bring in tax (or end up reducing the amount of social security payments that need to be paid otherwise) -- both are net positives.
- heavenlyblue 8y agoTheir subcontractors bring in tax, not them. And Amazon are not creating the jobs that working class wants, since they give no future guarantees.
- TheGrumpyBrit 8y agoA job you don't want is better than no job at all.
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- PunchTornado 8y agoprofit made in the UK should be taxed by the UK. I don't care what the US does. And this amazon, a seller/reseller of goods. If they disappear then people would just shop in another place. It's not like they are researching and building unique and non-replaceble products like apple or google.
- gambiting 8y agoSo if you own a British company, and do few jobs in France, where do you think you will be paying tax? In general, tax is paid where you declare the tax residence, not where you work. I know at least several people who live in Denmark but commute daily to Sweden for work, and of course they pay tax in Denmark, because that's where their tax residency is - it's the same with companies in general.
- girvo 8y agoThe USA isn’t in the EU, though of course there’s quite a few treaties and agreements in place. But frankly, the worldwide dominance of US companies coupled with their comparative lack of tax burden in other countries starts to grate on us over here (Australia in my case), rightly or wrongly. It’s not felt that they’re paying their fair share.
- PunchTornado 8y agoAmazon is Amazon UK Ltd in UK. A company registered in UK. Facebook is Facebook UK Ltd. Another company registered in the UK. They both pay taxes here. But not what it should because of accounting artifacts and weak laws.
- touristtam 8y agoIf a company have contract in another country there are definitely taxes to be paid in that country. It doesn't mean that some of those taxes can not be claimed back, but the work is effectively done abroad (as opposed to tax domiciliation) and therefore the tax is due in that country according to its laws.
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